Correlation Between Mainstay Mackay and Lord Abbett

Can any of the company-specific risk be diversified away by investing in both Mainstay Mackay and Lord Abbett at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Mainstay Mackay and Lord Abbett into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Mainstay Mackay California and Lord Abbett Short, you can compare the effects of market volatilities on Mainstay Mackay and Lord Abbett and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Mainstay Mackay with a short position of Lord Abbett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Mackay and Lord Abbett.

Diversification Opportunities for Mainstay Mackay and Lord Abbett

0.0

Correlation Coefficient

Mainstay Mackay  Lord Abbett

Pay attention - limited upside

The 3 months correlation between Mainstay and Lord is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Mackay California and Lord Abbett Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lord Abbett Short and Mainstay Mackay is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Mainstay Mackay California are associated (or correlated) with Lord Abbett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lord Abbett Short has no effect on the direction of Mainstay Mackay i.e., Mainstay Mackay and Lord Abbett go up and down completely randomly.

Pair Corralation between Mainstay Mackay and Lord Abbett

If you would invest  968.00  in Lord Abbett Short on October 24, 2024 and sell it today you would earn a total of  22.00  from holding Lord Abbett Short or generate 2.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Mainstay Mackay California  vs.  Lord Abbett Short

Mainstay Mackay Cali

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Mainstay Mackay California has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Mainstay Mackay is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Lord Abbett Short

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lord Abbett Short are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Lord Abbett is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mainstay Mackay and Lord Abbett

The main advantage of trading using opposite Mainstay Mackay and Lord Abbett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Mackay position performs unexpectedly, Lord Abbett can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lord Abbett will offset losses from the drop in Lord Abbett's long position.

The idea behind Mainstay Mackay California and Lord Abbett Short pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.